K
kelly
Guest
I am writing my business plan. More specifically my cashflow, projected financial statements, and projected balance sheets.
I also have to file my taxes (Canadian GST and PST).
I was told in a seminar about how publishing a book is considered a lumpy sum, because in order for it to be profitable, you need to purchase a huge amount and then store them. For this reason they are half considered a liability, and half an asset (or inventory?). I am a VERY small business.
Anyway, if I calculate my costs of the book with all costs involved, it ends up doubling the cost of the book because I have the loans and interest for the cost of the book already entered into account. This makes all my calculations incorrect, and makes it look like I am losing tons of money.
Anyone our there know the correct way to account for lumpy sums in my projections? What about the correct way to put them into my taxes? Should I be splitting the costs each year since I don't expect to have sold them all for at least 5 years?
Thank you for any help, and links.
I also have to file my taxes (Canadian GST and PST).
I was told in a seminar about how publishing a book is considered a lumpy sum, because in order for it to be profitable, you need to purchase a huge amount and then store them. For this reason they are half considered a liability, and half an asset (or inventory?). I am a VERY small business.
Anyway, if I calculate my costs of the book with all costs involved, it ends up doubling the cost of the book because I have the loans and interest for the cost of the book already entered into account. This makes all my calculations incorrect, and makes it look like I am losing tons of money.
Anyone our there know the correct way to account for lumpy sums in my projections? What about the correct way to put them into my taxes? Should I be splitting the costs each year since I don't expect to have sold them all for at least 5 years?
Thank you for any help, and links.